Indonesia in 2003

Case Code: ECOA107
Case Length: 11 Pages
Period: 2003
Pub Date: 2003
Teaching Note: Not Available

Price: Rs.300
Organization : -
Industry : -
Countries : Indonesia, Asia
Themes: -

Excerpts

Background Note

The first two centuries of Dutch colonization were administered by the Dutch East India Company and not by the Dutch government. After taking over from the Dutch East India Company in 1800, the Dutch government ran the Netherlands East Indies directly. Local rulers were replaced or integrated into the colonial bureaucracy...

Economic Policies

Agriculture (including animal husbandry, fishing and forestry) had historically been the dominant activity in Indonesia. The country was also rich in mineral resources, which had been exploited over the past three decades...

Corruption

Suharto's rule witnessed an unprecedented growth in institutionalized corruption. By the late 1970s, it was virtually impossible to do transactions with the bureaucracy without an informal payment of some sort...

Foreign Trade

In 2001, Indonesia's merchandise exports (fob) fell to $57.4 billion and imports (fob) to $34.7 billion, resulting in a trade surplus of $22.7 billion. At the same time, the deficit on the invisibles and transfers account fell to $15.8 billion, leaving a current-account surplus of nearly $6.9 billion...

Concluding Notes

Even though the Asian currency crisis of 1997 led to major political upheavals and the downfall of Suharto, Indonesia's economic reforms had not proceeded fast enough. After having taken over many non-performing loans of banks, the government controlled vast sectors of the economy...

Exhibits

Exhibit I: Indonesia: Main Economic Indicators, 2001
Exhibit II: Indonesia: Fact Sheet
Exhibit III: Indonesia: Economic Data
Exhibit IV: Comparative Economic Indicators, 2001
Exhibit V: Indonesia: Foreign Trade
Exhibit VI: Indonesia: Tourism Industry

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